Monday, March 26, 2012

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant moved back to the bull side a short time ago. Before the bell, Chairman Bernanke launched the markets announcing easy accommodation and money printing ahead. The markets and copper were flat with the dollar up just before he spoke, but reversed sharply on the news, the dollar plummeted as gold, silver, oil, copper--that was very important today, and of course equites all jumping higher.

Typically, Keybot would have flipped long after the open, but a timer kicked in where the quant had to wait until approximately 11 AM EST, but ath that time the algo needed to see the SPX up above 1412.  Minutes ago the 1412 was tagged and all the internals were lined up for the move back to the long side. The market rally is obviously due the quantitative easing pumping news right before the bell.

Keybot lost about a pecent and a half on the last trade.  Stay on guard for a whipsaw back to the short side. Markets are highly unstable and each days action simply reinforces this thought. Bulls are back in control for now. The SPX is now up over 12% on the year thus far.

4/1/12; 7:00 PM EST EOM EOQ1 =
3/30/12; 10:00 AM EST =
3/27/12; 10:00 AM EST =
3/26/12; 2:18 PM EST = +76; signal line is +65; go long 1412; (Benchmark SPX for 2012  = +12.2%)(Keybot this trade = -1.4%; Keybot for 2012 = +3.8%)(Actual this trade = -1.3%; Actual for 2012 = +5.5%)
3/25/12; 7:00 PM EST = +76; signal line is +64 but algorithm says stay short
3/23/12; 10:59 AM EST = +76; signal line is +63 but algorithm says stay short
3/23/12; 8:00 AM EST = +60; signal line is +63
3/22/12; 12:13 PM EST = +46; signal line is +63
3/22/12; 11:31 AM EST = +60; signal line is +64
3/22/12; 11:14 AM EST = +46; signal line is +65
3/22/12; 11:00 AM EST = +60; signal line is +66
3/22/12; 10:52 AM EST = +46; signal line is +66
3/22/12; 10:51 AM EST = +60; signal line is +67; go short 1392; (Benchmark SPX for 2012  = +10.7%)(Keybot this trade = +2.1%; Keybot for 2012 = +5.2%)(Actual this trade = +1.0%; Actual for 2012 = +6.8%)

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